Foreign banks pulled significant funding from their U.S. branches during the Great Recession. We estimate that the … for larger branches. This internal shock to the balance sheets of U.S. branches of foreign banks had sizable effects on …

affiliates in diverse foreign markets. We use the Great Recession as an opportunity to identify the balance-sheet shocks to … parent banks in the United States and then explore which features of foreign affiliates are associated with protecting, for … example, their status as important locations in sourcing funding or as destinations for foreign investment activity. We show …

Individual banks differ substantially in their foreign operations. This paper introduces heterogeneous banks into a … fixed costs in banking. Banks hold more assets and liabilities in foreign affiliates relative to cross-border positions if … the target country is further away and the cost of foreign direct investment is low. These results suggest that fixed …

-border lending by foreign banks; 2) a contraction in local lending by foreign banks' affiliates in emerging markets; and 3) a …

locally in the foreign market, arises from differences in country-level bank efficiency. Together, these two driving forces … determine the foreign assets and liabilities of a banking sector. The model provides a rationale for the observed rise in global … banking relative to international banking. Its key predictions regarding the cross-country pattern of foreign bank asset and …